Maxine,who Is 76 Years Old and Single,is Appropriately Claimed as a Dependent

question 125

Essay

Maxine,who is 76 years old and single,is appropriately claimed as a dependent on her daughter Beth's tax return.During 2016 she received $500 interest on a savings account.She had a part time job that earned $3,000.Her total itemized deductions were $1,300.
Required: Compute Maxine's taxable income for 2015.Show all calculations.

---

Definitions:

Segregate Market

The practice of dividing or separating markets into sections or categories based on consumer demographics, behaviors, or other characteristics.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with elasticity referring to the degree of responsiveness.

Good Substitutes

Products or services that can be used in place of each other, having a high cross-elasticity of demand.

Income Elasticity Coefficient

A measure indicating how much the quantity demanded of a good responds to change in consumer income.